3.24.2009

ForexYard - Trading Made Easy

To make a living from Forex trading, you need a reliable trading platform that is easy and convenient to use and offers the same tight spreads to large and small players alike. You also want a system that offers the ability to test your trading approach before committing real money.

Forex Yard is an online foreign currency exchange trading service. It is designed so that a new trader can sign up and start trading in a matter of minutes. The service consists of online trading tools, access, and educational programs for both beginners and expert traders to use, as well as a downloadable software trading platform. The organization believes strongly in education as the best means to expert trading, so the learning tools are extensive. Based in Cyprus, Forex Yard was designed by professional Forex traders, as well as internet and financial sector specialists, and the service caters to international traders.



Advantages of using ForexYard

ForexYard is an online trading platform that offers variety in all aspects of the trade and this is why it has become one of the better known online foreign currency trading facilitators in today’s market. One of the clear advantages with their system is that you can use it pretty much anywhere there is an internet connection. The reason for this, is that you have the choice of trading using both a web based Java system and downloading ForexYard’s own free Forex trading software to your own computer . The web based Java system means you don’t need any special software which would restrict your online trading ability to your own PC or laptop. They also have free trading station software that you can also download, though this is not necessary to be able to trade. This provides you with more sophisticated decision making tools.

A very important feature on ForexYard is the ability to trade in commodities. Gold is a growth market during recession and Silver is likely to have a rally after dropping nearly 1/3 last year. Another one of the benefits of Forex trading is the massive amount of leverage that traders can employ. ForexYard gives its traders 200:1 leverage (meaning, a customer must have 0.5% of the value of their positions in their trading account in order to execute a trade.

ForexYard offers a neat little “virtual trading” demo-account facility. You can practice trade, using real-time quotes and full platform functionality, but only risking “pretend” money. This is a great way of testing out trading systems, particularly if you use technical analysis as your decision making tool. Finally, they dedicate a whole section of their website to Forex training and education. This includes a section on charts and technical analysis techniques.

Another attractive feature of their service, is that you can make a decision to sign up online and start trading within minutes using your credit card (Visa, MasterCard, Diners Club, Maestro) or bank wire to fund your account. You can make a decision to join them and be “out there doing it” almost immediately. They are also very big on credit card security and your personal privacy as well. With a “SuperMini” account, you can start trading with as little as $100.

ForexYard boasts that they never freeze their spread prices. This is common with other market makers when price spikes occur. A trader’s worst nightmare is getting frozen out and unable to exit when a sudden price move, either in your favor or otherwise, takes place. ForexYard has a policy of fairness for all. They want to provide their less experienced clients with every possible advantage and consequently, provide tighter spreads across the board. These were once only available to more experienced account holders, while less experienced clients were given spreads 1-3 pips higher. Their “universal pip rate” has dispensed with this discrimination, so that new traders receive exactly the same spreads as professional clients.

What ForexYard offers?

Guaranteed Limited Risk - If your equity drops below what you can cover then the deal closes out so you are not left owing.

Training - An excellent tutorial package allowing traders of all levels to learn and develop trading technique, this is totally free with ForexYard.

Security - Using the latest SSL encryption technology, you can trade safe in the knowledge that your personal details are protected by the latest anti-fraud techniques.

Customer Service - All traders have access to a dedicated, 24-hour Support Center. Here you can receive help on any technical issues with your account, plus up to date advice on the markets. This is extremely useful and important because the staff all has great experience in trading.

Languages - ForexYard trading platform is available in the following languages: Chinese, Turkish, Spanish, German, Arabic, English, French, Norwegian, Finnish & Swedish.

Depositing - The minimum deposit at ForexYard is $100 and they accept the following methods: Credit Card, Neteller, Wire Transfer, Paypal, Western Union, MoneyGram and WebMoney.

Types of Account

ForexYard Super Mini - ForexYard has an excellent starter membership called the SuperMini Account. These accounts are 1/10th the size of a Forex standard account meaning new Forex traders can start learning and earning, without a large initial outlay.

ForexYard Standard Accounts - ForexYard Standard accounts are set up for the more experienced Trader. There is more variety on the spreads with the standard size being 10,000 base currency per trade. That’s 10 times more than the Super Mini, so your risk is higher, but so are the gains.

VIP Services - ForexYard offers VIP services which are often described as Trading Big Guns. They offer consultation and will work to tailor a package that meets your trading needs.

What can we expect in the future?

You can expect the same high level of service you are used to with a lot of improvements. First and the most important one will be the introduction of EA (or Robots as they are also known). At the moment ForexYard doesn't support EA's, although they will be releasing a new account type on their platform shortly with a specific EA built in. I will be happy to let you know about this once the new account type has been launched so that you can start using this service.

Conclusion

ForexYard offers two different things that is considered to be absolutely necessary in any trading platform, customer support and all the help you need to gain more knowledge. It doesn't matter how long you have been trading on the Forex market, you will never get tired of knowing that you can pick up the phone, 24 hours per day and talk to someone about your account. The tutorials on ForexYard are also top notch and will help everyone, from the raw beginner to the seasoned trader. I highly recommend ForexYard to everyone because of their easy-to-use system which is suitable for beginner’s as is for expert traders. If you don’t have a trading platform yet or you aren’t satisfied with the current one, join ForexYard and I am sure you won’t regret it.

ForexYard - Trading Made Easy

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Despite Shrinking Forex Reserves, China will Continue to Hold US Treasuries

Since Chinese Premier Wen Jiabao expressed doubts about China’s US loans and investments two weeks ago, the markets have been awash in speculation. In hindsight, it seems that the announcement was a political ploy, rather than a harbinger for a policy change. With a few qualifications, therefore, it seems to safe to conclude that China’s foreign exchange reserves will not undergo any serious changes in the near-term.

Motivated both by politics and pragmatism, China’s top foreign-exchange official said the nation will keep buying Treasuries and endorsed the dollar’s global role. "Treasuries form an important element of China’s investment strategy for its foreign-currency reserves", she said at a briefing in Beijing today. "We will continue this practice." The economic fortunes of China and the US have become increasingly intertwined over the last decade, such that China has come to depend on exports to the US to drive economic growth, while the US simultaneously depends on China to fund its fiscal and current account deficits. As a result, about two-thirds of China’s nearly $2 trillion in reserves is parked in dollar assets, primarily U.S. government and other bonds.



Even ignoring the potential political fallout from forex reserve diversification, such a move doesn’t really make practical sense. First of all, there isn’t a buyer sufficiently capitalized to relieve China of its US Treasury burden. If China decided to sell off some of its U.S. Treasury holdings, it would scarcely be able to dump that in large blocks. And a partial selloff would surely lead to a slump in the Treasury market, eroding the remaining value of China’s portfolio.

In addition, there doesn’t currently exist a viable alternative to US Treasury securities, nor to investing in the US, for that matter. China’s attempt at diversifying into corporate bonds and equities was extremely ill-timed, having been implemented just prior to the puncture of the real estate and stock market bubbles. Including the collapse in the value of its high-profile investments in the Blackstone Group and Morgan Stanley, total paper losses are estimated at a whopping $80 Billion. Investments in other currencies and markets, meanwhile, probably would have yielded similarly poor returns. The market for gold- mulled by some as a theoretical alternative- is even more volatile and not large enough to absorb more than a small proportion of China’s reserves.

As a result, China’s forex reserve diversification strategy is likely to proceed along two lines: change in duration of loans, and investments in natural resources. The risk of short-term national debt is comparatively more controllable. China increased its holding of short-term US bonds by $40.4 billion, $56 billion, and $38 billion in September, October and November, respectively. At that time, China began to sell long-term government debt. Through its affiliates meanwhile, China’s Central Bank is cautiously making stealthy forays into natural resources; see its recently-acquired a $20 Billion stake in Rio Tinto, an aluminum company, as evidence of this strategy.

Of course, China has announced tentative support for loaning money to the IMF and backing an ‘international’ reserve currency that would serve as an alternative to the Dollar. Given that this is probably many years away, however, it has little choice but to continue to hold Treasuries and the like. In the words of a high-ranking Chinese official: “We are in the middle of a crisis right now, and the priority for foreign exchange reserves is to minimize losses.”
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US Dollar Follows Familiar Pattern, Declines as Asian Stocks Rise on US Bank Plan (Euro Open)

The US Dollar returned to a familiar pattern in overnight trading, falling in tandem with rising stock prices as the US bank rescue plan boosted risk appetite. The greenback notably deviated from this dynamic in New York hours when the plan was first revealed. Euro Zone Current Account and UK Consumer Price Index releases headline the calendar in the European session.

Key Overnight Developments

• Japan’s Finance Ministry Asked BOJ to Buy Corp Bonds, Say Meeting Minutes
• US Dollar Lower Overnight as Asian Stocks Rise on Geithner’s Bank Rescue Plan

Critical Levels



The Euro added as much as 0.5% while the British Pound added a full 1% against the US Dollar as the safe-haven currency declined in tandem with stock gains across Asian exchanges. The greenback had deviated from the inverse correlation with risk in US hours, rising along with stocks, but returned to form in the overnight session.

Asia Session Highlights



Minutes from the last meeting of the Bank of Japan revealed that the Finance Ministry asked the monetary policy body to “expand the scope” of its corporate bond purchase program to channel more liquidity to cash-starved firms and promote lending and investment. Policymakers worked out the details of the bond-buying scheme as well as agreed to extend currently running programs to purchase commercial paper and offer unlimited collateral-backed lending to the private sector. Some BOJ members expressed concern that firms may develop an over-reliance on the bank’s current liquidity-boosting measures and suggested that an “exit strategy” needs to be formulated.

The US Dollar shed as much as -0.3% in the overnight session as capital flowed out of the standby safe-haven bid and into risky assets. Asian stock exchanges extended the rally sparked on Wall St after US Treasury Secretary Geithner announced a $1 trillion scheme to rid banks of toxic assets. The MSCI Asia Pacific Index added 1.3%.

Euro Session: What to Expect



January’s Euro Zone Current Account reading is likely to see the deficit widen after showing a -7.3 billion euro shortfall in the previous month. Earlier this week, the trade balance portion of the metric printed worse than economists predicted, showing a -10.5 billion euro deficit versus -9.0 billion expected. Trading terms deteriorated -24.1% from a year earlier as the deepening global downturn dwarfed overseas demand for European products. Indeed, export volumes rose just 4.0% through 2008, the least in 5 years. The capital side of the Current Account equation is unlikely to offset losses from the trade component: the MSCI index of Euro Zone stock performance slipped -7.7% while the Euro shed -6.9% against other major currencies through January. Meanwhile, the external balance has been improving at an accelerating pace in the US: the bilateral trade gap with the European Union narrowed to just -$3.5 billion in December, the smallest monthly shortfall since September 2001 while the overall Current Account gap shrank to a 5-year low of -$132.8 billion. A widening deficit in the Euro area coupled with a contracting one across the Atlantic implies a net outflow of capital from the currency bloc and into the States, extending our medium-term expectations of EURUSD downside into the long-term outlook.

In the UK, anemic economic growth is set to bring inflation lower, with the Consumer Price Index expected to decline to just 2.6% in the year to February, the lowest in 11 months. Minutes from the last meeting of the Bank of England revealed that policymakers voted unanimously to cut interest rates by 50 basis points and begin quantitative easing, committing to spend 75 billion pounds to buy government bonds fearing that price growth may slip well below the 2% target rate this year. Economists forecast benchmark rates to remain at 0.50% through the first quarter of next year as inflation comes in at just 1% in 2009 and 1.6% in 2010.

Written by Ilya Spivak, Currency Analyst
Article Source - US Dollar Follows Familiar Pattern, Declines as Asian Stocks Rise on US Bank Plan (Euro Open)
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U.S. Toxic Debt Plan Spurs Market Optimism

U.S. Treasury Secretary Timothy Geithner unveiled plans last week for a public-private partnership of investors buying out toxic banking and housing debt. Since that time, investors have been in a frenzy to sell off the USD and buy into various private investments, creating a rally on Wall Street, and intense volatility in the forex market. The recent make-or-break attitude of forex traders has generated such volatility that it could bring many investors back into the fold in order to capture profits from the large price swings which have occurred.



USD - Dollar Moves on U.S. Banking Plan

The Dollar recorded a volatile trading session as the U.S. Treasury Secretary Timothy Geithner unveiled plans for a public-private partnership to buy the toxic debts of U.S. banks. In effect, Geithner's speech led to a rally on Wall Street that resulted in a 7% rise in the Dow Jones and other indices. The other big factor that helped spur a rally on Wall Street was better-than-expected U.S. housing data. This showed a 5.1% increase in Existing Home Sales from January to February. As a result, the Dollar cut its losses that it made earlier on in the trading session against currencies such as the EUR.

The Dollar ended yesterday's trading session with some mixed results against its major currency crosses. The Dollar closed down 9 points against the EUR to 1.3654. The Dollar gained 139 points against the Japanese Yen, as the USD/JPY rate approaches the 100.00 mark again. However, against the British Pound, the Dollar made some big losses. The USD dropped about 170 points to close at 1.4683 against the GBP. This comes about as Britain's stock market and currency reacted very positively to the banking plan from the U.S.

Looking ahead to today, there are a number of economic news events and data releases coming out of the U.S. The House Price Index (HPI) and Richmond Manufacturing Index are set to be released at 14:00 GMT, and will be the two of the biggest indicators from the States. However, the news event that may have a very large impact on the Dollar and its main currency pairs in today's trading is Federal Reserve Chairman Ben Bernanke's speech around the same time. This speech is very important as he well be testifying with Timothy Geithner about the controversial American International Group (AIG) bailout. Traders are advised to watch closely, as this may lead to great volatility in Dollar trading.

EUR - Pound Jumps on U.S. Bank Rescue Plan

The Pound made very impressive gains in yesterday's trading, as the U.S. Treasury Secretary Timothy Geithner unveiled an impressive and detailed banking plan to rescue U.S. banks, and uplift the U.S. housing sector. This led to the biggest rally on Wall Street since October. As a result, Britain and Euro-Zone stock markets made big gains as well.

The Pound rose by 170 points in Monday's trading to close at 1.4683 against the USD. This was mainly owed to the fact that investor confidence poured back into the Pound as British banking shares soared in yesterday's trading. Also, the Pound has been undervalued against the Dollar as of late. Against the EUR, the GBP gained an impressive 103 points to close at 0.9310, as the EUR/GBP has moved away from parity yet again. Also, news that Germany's economy will decline by the most in the Western world this year, and unemployment in the Euro-Zone's largest economy will reach 5 million by the end of 2010, helped push down the EUR/GBP. The GBP also rose by about 350 points against the JPY to close at 143.35, as traders dropped safe-haven assets in Monday's trading.

Today, there is plenty of economic news coming out of both Britain and the Euro-Zone that will determine the GBP and EUR levels by the end of today's trading. From the Euro-Zone, there are the Euro-Zone Flash Services PMI, Flash Manufacturing PMI, and Current Account figures that are expected to be published simultaneously at 9:00 GMT. From Britain, the most important news will be the Consumer Price Index (CPI) figures and Inflation Report Hearings at 9:30 GMT, and the Bank of England (BoE) Governor Mervyn King's speech at 15:30 GMT. All these news events will be important in helping set the strength of the GBP and EUR in this week's trading.

JPY - Yen Plummets against Dollar and EUR

The Yen plummeted against its major currency pairs in yesterday's trading as investors ditched safe-haven assets for riskier ones. The Japanese stock market made notable gains too as the U.S. Treasury Secretary unveiled plans for a public-private partnership of investors buying out toxic banking and housing debt. This was the dominant factor leading to U.S. and global stock market rallies, and the ditching of safe-haven assets in yesterday's trading. The Yen was also hit hard yesterday; as the government seeks everything in its power to reduce the value of the JPY in order to spur Japanese exports.

The Yen closed down by 139 points against the Dollar in Monday's trading at the 97.74 level; the USD/JPY could be reaching the 100.00 mark in the near future. The EUR rose by 180 points against the Japanese currency to close at 133.47, as the safe-haven currency was dropped yesterday. Against the Pound, the Yen dropped a massive 350 points on Monday to close at 143.35. This comes about as the British currency reacted extremely positively to the banking news coming out of the U.S. As the Japanese economy continues to deteriorate, despite improvements from the U.S., expect the JPY to lose more ground against the major currencies in the coming days.

Crude Oil - Protests in Brazil and Increased Demand Help Raise Oil Prices

Crude Oil prices hit $54 yesterday, before settling at $53.62. This price is the highest Oil has been since December 2008, but still significantly lower than last July's high of $147 a barrel. Crude prices increased yesterday for a number of reasons. However, the 2 main factors were the U.S. banking plan unveiled by U.S. Treasury Secretary Geithner to buy toxic banking assets, and the better-than expected housing data. Also, there were protests in Brazil, which have been going on for 5 days, which have helped put upward pressure on Crude prices.

China announced yesterday that demand for Oil increased by 0.5%, marking a recent reversal. The underlying reason that has led to stability in the Crude Oil market is the supply cuts by the Organization of Petroleum Exporting Countries (OPEC). It seems their strategy has worked, and if they continue to cut the supply, Crude prices are likely to rise further. Additionally, if the U.S. continues to publish good data, and Obama shows that he is able to lead the world out of recession, then Crude prices may hit the $58-$60 price level by week's end.

Article Source - U.S. Toxic Debt Plan Spurs Market Optimism
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What is Forex?

If you would go out on a dinner with your friends or family and you mentioned that you were trading on the Forex market most of them wouldn’t know what you were talking about. The worst thing is that most of the Forex traders that join the Forex market don’t know what they are doing. Understanding what Forex is, is the first good step to your success at Forex trading.


The foreign exchange market (Currency, Forex, or FX) is where currency trading takes place. It is where banks and other official institutions facilitate the buying and selling of foreign currencies. Forex transactions typically involve one party purchasing a quantity of one currency in exchange for paying a quantity of another. The foreign exchange market that we see today started evolving during the 1970s when world over countries gradually switched to floating exchange rate from their erstwhile exchange rate regime, which remained fixed as per the Bretton Woods system till 1971.

Today, the Forex market is one of the largest and most liquid financial markets in the world, and includes trading between large banks, central banks, currency speculators, corporations, governments, and other institutions. The average daily volume in the global foreign exchange and related markets is continuously growing. Traditional daily turnover was reported to be over US$3.2 trillion in April 2007 by the Bank for International Settlements. Since then, the market has continued to grow. According to Euromoney's annual Forex Poll, volumes grew a further 41% between 2007 and 2008.

Forex Turnover

Forex Turnover
Main foreign exchange market turnover, 1988 - 2007, measured in billions of USD.
The purpose of Forex market is to facilitate trade and investment. The need for a foreign exchange market arises because of the presence of multifarious international currencies such as US Dollar, Pound Sterling, Yen, etc., and the need for trading in such currencies. Since you aren’t buying anything physical this kind of trading can be confusing. When buying a currency think of it as buying a part in that particular country’s economy because the currency rate reflects the economical situation of the country when compared to others.

Currencies

Currencies
List of most popular currencies on the Forex market

Forex used to be a closed market because only the “big boys” because you needed between 10 and 50 million $ to open an account. But today, with the development of internet, online Forex brokers have the possibility to offer their services to “little” traders. All you need to start is a computer, fast internet connection and information which you can find on this page also.

This enormous market is like the dangerous sea where you can meet lots of sharks and dangerous waters but at the same time it is the only one where two weeks of trading can hypothetically bring you $1,000,000 out of $1,000 of initial investment.

This is certainly hypothetically because a lot of newbie traders deal with their trades as gambling, that surely bring them to having nothing in the end. You should always keep the phrase "be careful!" in your mind. This market would give you its profit possibilities only if you learn the basic things hard and make lots of demo trading.

The statistics is that as much as 95% of traders come to losing their money at Forex, 5% have profit and less than 1% of traders make large fortune at Forex. You shouldn't produce, sell or advertise anything trading at Forex. Your assets are your knowledge, experience and a small amount of cash.

This market is a platform for banks, transnational corporations and individual traders to change the currencies they possess into other ones. This is the spot Forex market. At this market you can trade with up to 1:400 leverage which means that you'll get $400 on your account for each dollar invested. So, you can trade with the $400,000 sum having invested $1,000 onto your account.

Forex is unique among other world markets because in any time of day and night, somewhere in the world, a financial centre is open for business, banks and corporations exchange currency all the time, with a little lower frequency during the weekend.

Why to trade on Forex?

1. There is no commission fee for trading at Forex.
2. There is no intermediary, you can trade directly at Forex.
3. Forex is open 24-hours a day.
4. Nobody can influence the market for a longer period.
5. High liquidity.
6. Free demo accounts, analysis and charts.
7. Small accounts that allow everyone to try out his luck.

Hope this has answered a lot of questions you were asking yourself about Forex and that you can now start trading. Also make sure that you check out other articles on this blog which can help you earn your fortune.

Good luck to everyone!